If initially the money supply is $2 trillion, velocity is 5, the price level is 2, and real GDP is $5 trillion, a fall in the money supply to $1 trillion
A) reduces real GDP to $2.5 trillion.
B) causes velocity to rise to 10.
C) decreases the price level to 1.
D) decreases the price level to 1 and decreases velocity to 2.5.
C
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Refer to Table 4-8. If a minimum wage of $9.50 is mandated there will be a
A) surplus of 20,000 units of labor. B) surplus of 10,000 units of labor. C) shortage of 10,000 units of labor. D) shortage of 20,000 units of labor.
Monopoly is characterized by
A) unique products. B) market entry and exit are difficult or impossible. C) non-price competition not necessary. D) All of the above
A monopoly
a. can set the price it charges for its output and earn unlimited profits. b. takes the market price as given and earns small but positive profits. c. can set the price it charges for its output but faces a downward-sloping demand curve so it cannot earn unlimited profits. d. can set the price it charges for its output but faces a horizontal demand curve so it can earn unlimited profits.
If total revenue exceeds the total cost of production, a firm
A. suffers a loss. B. shuts down. C. earns a profit. D. breaks even.